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JAIIB RBWM Unit 25 — Tax Planning: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 2 November 2026 · Paper 4 of the November 2026 cycle (29 November 2026)

This page is a free slice of our JAIIB RBWM question bank for Unit 25 — Tax Planning (Module D — Wealth Management). The Mock Centre holds 59 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

RBWM · Module D59 MCQs in the Mock Centre5 free belowPaper on 29 November 2026

Key facts examiners test from this unit

  1. Direct (income tax — unshiftable) vs indirect (GST from 1-7-2017 — shiftable); FY earns, AY assesses (FY21-22 → AY22-23); PY = year before AY (Sec 3); same-year taxation exceptions incl. NR shipping (Sec 172).
  2. Residence: 182 days (or 60+365-in-4); ROR adds 730 days in 7 years + resident 2 of 10; ROR = global income; DTAA kills double taxation; persons under 2(31) = 7 categories.
  3. IDs: PAN = 10-character alphanumeric; TAN = TDS-deductor number; five heads of income (interest/dividend/royalty/lottery = OTHER SOURCES).
Law update, November 2026. The Income-tax Act 2025 (in force from 1 April 2026) restates this rule under a new section number and uses a single 'tax year' in place of 'previous year' and 'assessment year'. Under the Income-tax Act 2025 (from 1 April 2026) the new regime sits in section 202 and remains the default. From FY 2025-26, income up to ₹12 lakh is effectively tax-free under the new regime (rebate under section 87A).

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
A DIRECT tax among these:
Why (c): INCOME TAX is the direct tax — the earner bears it personally and cannot shift the burden to anyone else.
Question 2 of 5
Under the Income-tax Act 1961, income of FY 2021-22 was assessed in:
Why (b): Income earned in FY 2021-22 is assessed in AY 2022-23 — the assessment year is always the NEXT year.
Law update, November 2026: The Income-tax Act 2025 (in force from 1 April 2026) restates this rule under a new section number and uses a single 'tax year' in place of 'previous year' and 'assessment year'.
Question 3 of 5
Heads of income for computing total income:
Why (c): Total income is computed under FIVE heads: SALARY, HOUSE PROPERTY, BUSINESS/PROFESSION, CAPITAL GAINS and OTHER SOURCES — every rupee finds one of the five doors.
Question 4 of 5
A house bought in May 2024 is sold in March 2026. The gain is:
Why (b): Immovable property becomes long-term only after 24 months; May 2024 to March 2026 is about 22 months, so the gain is short-term.
Question 5 of 5
Rahul's will is written and signed by him, but only one witness has attested it. The will is:
Why (b): Under the Indian Succession Act an ordinary will must be in writing, signed by the testator and attested by at least two witnesses; one witness is not enough. Registration is optional.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
DirectIndirect taxUnshiftable vs shiftable
FYAYEarning vs assessing years
Practise all 59 questions on Unit 25. The free demo opens a slice of every subject with the same explanations; the RBWM Online-only pass unlocks all 1,900+ RBWM questions, the full and module mocks, Smart Revision and the Readiness Score for 18 months (₹1,299). Not sure where you stand? Sit the free 120-question mock first (all four papers, questions drawn from pages like this one, real exam screen).
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of November 2026; verify from official sources before relying on them in practice.